#sierrametals

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Metals X Money: Interview with Sierra Metals

Capital 10X interviews Sierra Metals (TSX: SMT, NYSE: SMTS) Manager of IR to learn more about their 2020 EBITDA guidance and future expansion opportunities. #mining #stocks Read the full article

[capital10x]

Sierra Metals Announces Intention to Return US$30 Million to Shareholders

Sierra Metals (TSX: SMT) announced plans to return up to US$30 million dollars in 2020. We detail the terms and how it will affect the stock price. #stocks #metals Read the full article

[capital10x]

Sierra Metals Announces Initial Results of Multiple Reserve and Resource Updates

Sierra Metals (TSX: SMT) has climbed over 20% since releasing initial results from two reserve and resource updates. Clearly investors like what they saw. #miningstocks #goldstocks  Read the full article

[capital10x]

Sierra Metals Announces Initial Results of Multiple Reserve and Resource Updates

Polymetallic miner Sierra Metals (TSX: SMT, NYSE: SMTS) has climbed over 20% as of this writing since releasing initial results from two separate 43-101's. While the updates were focused more on improved definition and quality of the reserves and resources,  investors are clearly happy with the results. We previously highlighted the updates as potential catalysts and will be releasing a full report once the 43-101's are made available on sedar (withing 45 days of the press release). Below follows a high-level summary of each update.

Flagship Yaurichocha Holds Steady

Sierra's flagship Yaurichoca mine in Peru has been the economic powerhouse of the company. While their other assets will grow in importance, this mine has provided stability. Overall mineral reserves are now 8.4 million tonnes, 46.5 g/t silver, 1.1% copper, 0.8% lead, 3.1% zinc and 0.5 g/t gold. This represents a 5.4% overall tonnage decrease, however, proven reserves increased 45% while probable reserves decreased 18%. Overall measured and indicated resources are 12.7 million tonnes, with an average of 51.5 g/t silver, 1.3% copper, 0.9% lead, 3.0% zinc and 0.6 g/t gold. This represents a 4% tonnage decrease, with an 18% increase in measured reserves and an 11% decrease in indicated reserves. While tonnage decreased overall, there is a clear improvement in the quality of the reserve and resource classification. Given the depletion since the last update in 2017, as well the use of a lower, more accurate density factor, a small decrease is expected. Sierra Metals will continue brownfield and greenfield exploration programs at the Yaurichoca mine with the goal of increasing reserves and resources through discoveries and expansions.

Bolivar Resources Updated with Reserves On Deck

Sierra Metals Bolivar asset, a copper mine in Mexico, will eventually take over as the main revenue generator for the company. While the full resource and reserve update will be released before the end of Q1 2020, the company has provided an update on resources. Overall total indicated resources for the mine are 11.6 million tonnes, with an average of 0.95% copper, 18.1 g/t silver and 0.24 g/t gold or 1.17% CuEq. This represents a 12% overall tonnage decreased, including depletions. Grades were also updated with reductions of 9% for copper, 20% for silver and 17% for gold. Total inferred resourcces are 16.7 million tonnes, with an average of 0.93% copper, 16.8 g/t silver and 0.30 g/t gold or 1.16% CuEq. This represents a tonnage increase of 108%, while grades were reduced by 3% for copper, 25% for silver and 29% for gold. The upcoming reserve and resource update will include additional drill results and is expected to upgrade a portion of their newly increased inferred resources into the indicated category. Once again, investors are seeing improved quality and classification. While they will have to wait to see the reserve update, initial results are positive. Investors can expect the full updates within Q1 of 2020. Read the full article

[capital10x]

Sierra Metals CFO Discusses Q3 Earnings and Plans for $40M of Cash

Capital 10X interviewed Sierra Metals (TSX: SMT) CFO to learn more about their transition to a cash harvesting period and what investors can expect in 2020. #gold #preciousmetals $SMT Read the full article

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Sierra Metals Releases Q3 Earnings with Quarterly and Yearly Increases Across the Board

Sierra Metals (TSX: SMT) released Q3 financial results and investors responded favorably to the positive cash flow and revenue increases. #preciousmetals #stocks  Read the full article

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Sierra Metals - A Diversified Miner Entering a Cash Flow Generation Phase

Capital 10X interviewed Sierra Metals (TSX: SMT) to learn about their expanding operations. Find out why we like this miner as it starts increasing cash flow. #metals #preciousmetals $SMT Read the full article

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Sierra Metals Reports 16% Adj. EBITDA Increase at Flagship Yauricocha Mine

Sierra Metals , a Toronto based polymetallic miner with three operating mines in Peru and Mexico, reported stellar financial results at Yauricocha, their primary mine in Peru. The company is rounding the corner on a period of CapEx and production ramp-ups at all three mines and the first results are starting to show at Yauricocha. While companies can never influence metals pricing, one lever they can pull to influence results is production and Sierra Metals is demonstrating that ability. We've previously summarized the full Q3 production results in an earlier review, below is a summary of the financial results from their Yauricocha mine in Peru.

Yauricocha Ready for Ramp Up

The Yauricocha mine has been permitted to operate at an average of 3,150 tpd through 2019, with a planned increase to 3,600 tpd in 2020. Due to a now resolved illegal strike action, the mine has been operating at a higher throughput, over 3,500 tpd for Q3, to make up for the lost time. The results have been strong and demonstrate the mine is ready for the production increase in 2020 once permitting is complete. On the quarter, the mine recorded revenues of $44.4 million and Adjusted EBITDA of $20.5 million, an increase of 17% and 16% year over year. This was achieved with only an 8% increase in ore throughput year over year, and with realized zinc metal pricing down 7% over that time. Cash costs per zinc equivalent pound were down 21% year over year to $0.38, while AISC held steady at $0.66 per zinc equivalent pound. Notably, AISC was down 23% from Q2, supporting our earlier statement that Q3 financials for Sierra Metals will be strong. Looking forward, President and CEO Igor Gonzales highlighted some of the improvements and catalysts on the way for Sierra Metals. These include basic mine and plant improvements that will sustain the lower production costs achieved this quarter, as well as further mine development that will allow an additional 10,000 tonnes of waste and ore to be removed from the mine. Investors also have drill results at high-value targets and updated 43-101's to look forward to before year-end. Below summarizes the Q3 production results across all three mines.

Q3 Production Results Summary for Sierra Metals

On a consolidated basis, processed ore has increased substantially over the last two quarters, along with metal production. Tonnes Processed

Source: Company Filings. Notably, on both a year-over-year and quarter-over-quarter basis, the metal production increases have outpaced tonnes processed for virtually all metals. While this doesn't speak to the economics, it's certainly the first step to a successful expansion. Production %Change on a Year-over-Year Basis

Source: Company Filings. Production %Change on a Quarter-over-Quarter Basis

Source: Company Filings. Read the full review of Sierra Metals Q3 production results here.   Read the full article